1909.] Notes Regarding Railway Regulation. 63 



It has to be recognized that many phases of competition bring about 

 apparent discriminations. It depends upon the facts whether these are 

 undue or unjust. Some factors bearing upon this, are water competition 

 both by lake and river carriers and ocean carriers. Again where two 

 railways connecting the same terminal differ in point of mileage, the short 

 line mileage will govern the through rate of the railway with the longer 

 mileage. Again, competition of markets will govern a rate. For example, 

 the rate which Canadian bacon laid down in Liverpool can stand from the 

 initial point of shipment will depend upon railway and water rates and 

 prices of Danish bacon laid down in the same market. 



Rate regulation is a very complex matter. There is no rigid three 

 foot rule to measure reasonableness. It might seem that a fixed rate 

 per mile would be the most obvious method of fixing rates. The result 

 of the application of this would be that low grade bulky articles could 

 not be hauled a long distance. Hay, or brick, for example, would have a 

 local market, while silk or tea, whose value is comparatively high, could 

 be brought from a long distance. In practice we find railways giving in 

 various instances blanket rates which appear to disregard distance. For 

 example, oranges are shipped from California to Toronto at $1.15 per 

 hundred pounds in carloads. This rate applies to points in the United 

 States from the Mississippi east. Toronto takes the same rate as Buffalo. 

 This rate is in part governed by the competition of oranges from Europe. 



It must be recognized that many factors must be considered when 

 investigating the reasonableness of a rate or rates, and that one important 

 factor is the market value of an article. This is not a recognition of a 

 right to extortion. It recognizes not only that silk may stand a relatively 

 high rate. It recognizes that stone, brick, and hay can stand only a 

 relatively low rate. It recognizes that the lower the market value of the 

 article the lower must be the rate. 



The regulative policy attempts to protect the general public interests 

 without trenching on the legitimate field of private interest. Railway 

 Commissons in this country as well as in other countries, have exercised 

 educational functions and their preventive work is even more important 

 than their remedial work. One thing which every regulative tribunal 

 of this kind must keep before it is, that it stands for fair play to all sections 

 of the public railways and shippers alike. 



